AVGO — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($319.55)
DCF	$219478.56	+68583.6%
Graham Number	$79.64	-75.1%
Reverse DCF	—	implied g: 27.0%
DDM	$53.56	-83.2%
EV/EBITDA	$27.70	-91.3%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $25.04B

Near-term growth (yrs 1–5)(%)Rev: 16.4% / EPS: 188.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.73%

Computed WACC: 10.73%

Cost of equity (Re)11.02%(Rf 4.30% + β 1.22 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)97.40%

Debt weight (D/V)2.60%

Results

Intrinsic Value / share$153243.36

Current Price$319.55

Upside / Downside+47856.0%

Net Debt (used)$29.35B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	180.1%	184.1%	188.1%	192.1%	196.1%
7.0%	$317729.57	$341065.15	$365752.22	$391848.65	$419413.96
8.0%	$241771.85	$259526.93	$278310.23	$298165.76	$319138.81
9.0%	$190428.25	$204411.27	$219203.99	$234841.08	$251358.19
10.0%	$153755.99	$165044.86	$176987.37	$189611.50	$202946.02
11.0%	$126499.71	$135786.25	$145610.42	$155995.26	$166964.43

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $4.76

Book Value / share($)Yahoo: $59.22

Results

Graham Number$79.64

Current Price$319.55

Margin of Safety-75.1%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.73%

Terminal growth rate(%)

Computed WACC: 10.73%

Cost of equity (Re)11.02%(Rf 4.30% + β 1.22 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)97.40%

Debt weight (D/V)2.60%

Results

Current Price$319.55

Implied Near-term FCF Growth32.4%

Historical Revenue Growth16.4%

Historical Earnings Growth188.1%

Base FCF (TTM)$25.04B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $2.60

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$53.56

Current Price$319.55

Upside / Downside-83.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $35.00B

Target EV/EBITDA multipleCurrent: 4.6×

Net Debt($B)Default: $29.35B

Results

Implied Equity Value / share$27.70

Current Price$319.55

Upside / Downside-91.3%

Implied EV$160.70B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$15.35B	$22.35B	$29.35B	$36.35B	$43.35B
0.6x	$1.13	$-0.35	$-1.83	$-3.30	$-4.78
2.6x	$15.89	$14.41	$12.94	$11.46	$9.98
4.6x	$30.66	$29.18	$27.70	$26.23	$24.75
6.6x	$45.42	$43.94	$42.47	$40.99	$39.52
8.6x	$60.19	$58.71	$57.23	$55.76	$54.28

← Overview Financial Statements ← Companies